Analysts believe it will be difficult for Spain to remain a top-three EU producer, and forecasts show Europe overall will see its share of global production continue to shrink.
An MOU signed with the city of Paterna calls for CKD production of cars bound for North Africa and Latin America, but the plan appears to make little business sense.
The medium-size sedan, which sits atop the SEAT range, posted sales of just 3,160 units last year, down 55.8% from 2011. During the first two months of 2013, only 428 Exeos were delivered.
The auto maker reverses an earlier decision to build an upcoming car in the U.K. or Turkey, returning the project to Barcelona after securing a new concessionary labor deal in January.
The pact calls for 2-tier wages and more working days, but it comes a couple weeks after the auto maker’s deadline for winning a vehicle production program for 2014.
Despite shrinking sales and production, auto makers assigned several new models to their Spanish plants last year. They find the country attractive in part because of its flexible labor structure and regulations.
Nissan’s latest cost-reduction bid offers a replacement program for the Pathfinder and X-83 models in exchange for lower entry-level wages and more working days.